The International Trade Centre (ITC) and the United Nations Capital Development Fund (UNCDF) have signed a new agreement that marks a significant step towards expanding access to finance for small and medium-sized enterprises (SMEs), particularly those in developing markets.

The agreement, signed on the margins of the 81st session of the United Nations General Assembly (UNGA81), provides a framework for the two organizations to jointly develop solutions that bring trade-related technical assistance and financing together, combining ITC’s trade and SME expertise with UNCDF’s catalytic and concessional financing capabilities, helping to address one of the most persistent barriers facing small businesses seeking to trade and scale.

The partnership framework lays the foundation for the establishment of a dedicated facility which will support SMEs across Africa through tailored financing solutions, technical assistance, and policy and market expertise. The facility will provide a vehicle through which public and development finance can be deployed catalytically to address investment barriers, mitigate investment risks and mobilize additional private capital into sectors with strong export and growth potential.

“The challenge is not simply the availability of capital, but creating the conditions for that capital to flow where it is needed most,” said Pradeep Kurukulasuriya, Executive Secretary of the United Nations Capital Development Fund (UNCDF).

“Too often, viable small businesses are perceived as too risky or too costly to finance. Working with ITC allows us to tackle both sides of that equation, strengthening the capacity of SMEs to compete and access markets, while using catalytic finance to address the risks that prevent capital from reaching them”, said Pradeep Kurukulasuriya, Executive Secretary of UNCDF.

The new framework responds to priorities identified by governments at ITC’s inaugural Global SME Ministerial Meeting in Johannesburg, in July 2025, during which representatives from 60 countries placed improving SME access to finance among their shared priorities. It also reflects the broader shift in development cooperation towards approaches that use concessional finance strategically and catalytically to mobilize investment and private capital.

ITC Executive Director Pamela Coke-Hamilton said: ‘Access to finance is a top challenge facing small businesses. But financing alone isn’t enough – entrepreneurs also need the knowledge, market intelligence and business skills to invest effectively. That’s what our new partnership with UNCDF is about, to help bridge the trade-finance gap, at scale, and build solutions that are more sustainable for small businesses.”